Slide 1: Cegedim
Cegedim me cegedim
Slide 2: © Cegedim 2017
© Cegedim 2017
Slide 3: Cegedim Annual
Cegedim Annual » «
Slide 4: © Cegedim 2017
© Cegedim 2017
Slide 5: Agenda and Safe Harbor Statement
AGENDA 01 SAFE HARBOR STATEMENT ---------- This presentation contains forward- looking statements (made pursuant Cegedim Vision to the safe harbour provisions of the By Jean-Claude Labrune Private Securities Litigation Reform Act of 1995). By their nature, forward- looking statements involve risk an
Slide 6: Cegedim
mi, cegedim
Slide 7: Cegedim Vision
Cegedim Vision Jean-Claude Labrune
Slide 8: Cegedim continues to reinvent itself, innovate and invest
» Cegedim continues to reinvent itself, innovate and invest Cegedim » Strategic refocusing Vision » New products • Docavenue, Smart RX, Pulse Cloud, Vision Anywhere, MSP solution, Activ’Infinite 7, etc » New organization » Cegedim continues to Invest • SaaS, Digital, Big Data, BPO │8│ © Cegedim 2017
Slide 9: Numerous opportunities
New ways in the healthcare management Numerous New Government opportunities reforms New ways of Delivering healthcare © Cegedim 2017
Slide 10: Cegedim
mi, cegedim
Slide 11: Cegedim Strategy
Cegedim Strategy Laurent Labrune
Slide 12: Our Playbook
Our Playbook │12│ © Cegedim 2017
Slide 13: Our Playbook: Planning
Our Playbook Planning │13│ © Cegedim 2017
Slide 14: Our Playbook
Our Playbook │14│ © Cegedim 2017
Slide 15: Our Playbook: Portfolio Management
Divestments » CRM and Strategic Data April 2015 Our Playbook: Proceed used to pay back debt Portfolio Management Acquisitions » Activus (Cegedim Insurance Solutions) Jul.15 » Nightingale (CHS) Oct.15 » Futuramedia (Digital) Nov.16 » BBM (CHS) Feb.17 │15│ © Cegedim 2017
Slide 16: Cegedim Today: Our Clients
83% of FY 2016 revenue Cegedim Today: Our Clients 17% of FY 2016 revenue Proportional to FY 2016 Revenue • Software • Software • Services •Payroll • Database • BPO • BPO • Services • Third-party payment • TAM • Software • Database • Data • Services • Supply chain • Dematerialization • Supply chain •
Slide 17: Cegedim Today: Our Divisions
Cegedim Today: Our division │17│ Proportional to FY 2016 Revenue (1) €4.0m adjustment to the Healthcare Professional EBITDA © Cegedim 2017
Slide 18: Cegedim Today: Our Presence
Cegedim Today: Our Presence │18│ © Cegedim 2017
Slide 19: Cegedim Today: Our Positions
Cegedim Insurance Solutions Cegedim SRH Cegedim Today: Software and IT In France Third-Party Payment in France In France +350,000 employees managed everyday Our Positions Cegedim e-business Cegedim Healthcare Software +300 million UK Pharmacists European French, Italian French Pharmacists Electronic
Slide 20: Cegedim Today: Our Strengths
Leading market positions Stable, well-balanced in each of our divisions and diversified revenue mix Cegedim Today: Unique presence Our Strengths High barriers to entry in the Healthcare Ecosystem Recognized portfolio of Long-standing shareholder innovative and integrated support and experienced solu
Slide 21: Our Playbook
Our Playbook │21│ © Cegedim 2017
Slide 22: Our Playbook: Investing in Innovation
Capitalized R&D €40.6m +44.3% Percentage increase Our Playbook: In FY 2016 compare to a year ago Investing in Innovation Revenue on Capitalized R&D ratio 9.2% In FY 2016 +261bps Percentage increase compare to a year ago │22│ © Cegedim 2017
Slide 23: Our Playbook: Investing in Innovation
Launch of numerous new products Pulse Cloud Practice Management for US GP’s Vision Anywhere for UK GP’s SaaS Our Playbook: Smart RX for French Pharmacists Digital Investing in MonLogicielMedical.com for French GP’s Innovation Launch of numerous new products Docavenue French platform Cegedim e-busine
Slide 24: Our Playbook
Our Playbook │24│ © Cegedim 2017
Slide 25: Business Model Transformation
Business Model Transformation │25│ Align organization and resources to our best opportunities © Cegedim 2017
Slide 26: BPO: Full Service Model
Software Extending the range of opportunities BPO: Full Service Model Software & Full Services Model + • US GP’s with RCM • HR Department (FNAC) • Health Insurance Companies (Klesia, YSTIA) Creating new opportunities with customers and expanding the value of Cegedim’s offer │26│ © Cegedim 2017
Slide 27: Operational Excellence
Simplify and optimize process Increase R&D productivity Software Factory Operational Excellence Reduce cost of services Industrialization New Head of HR New local management team Building employee engagement Recrut’lab │27│ © Cegedim 2017
Slide 28: 4 Growth Engines
4 Growth Engines │28│ © Cegedim 2017
Slide 29: We have a clear vision for our future
We have a clear vision for our future and are strongly positioned in key global market Cegedim’s Transformation Our playbook is underway and starting to deliver benefits 2017 is a turning point: sustainable future growth in revenue and earnings │29│ © Cegedim 2017
Slide 30: Cegedim
mi, cegedim
Slide 31: Finance
Finance Pierre Marucchi
Slide 32: © Cegedim 2017
© Cegedim 2017
Slide 33: 2016 Performance and Financial results
2016 Performance and Financial results
Slide 34: Operating Performances
Group Revenue 4.4% The business model transformation initiated in fall 2015 is €440.8m +0.2% beginning to pay off +3.4% reported with acceleration +4.4% L-f-L FY 2015 FY 2016 over the year 2016 Group EBITDA +0.7% Operating Negative impact from: Performances SaaS, R&D effort and €61.4m (21.8)% BPO de
Slide 35: Revenue growth by division
+4.4% (1.7)% €440.8m 0.8% €426.2m +3.4% reported FY 15 L-f-L Forex Structure FY 16 FY 2016 revenue Revenue growth +11.8% (6.4)% €440.8m n.s. €426.2m Insurance , HR Activities not professionals & e-services Healthcare allocated Health FY 15 FY 16 │35│ Revenue growth by division © Cegedim 2017
Slide 36: Focus on Organic Growth
Group Revenue +5.4% +5.2% +4.8% +4.9% +4.4% +3.6% +2.4% Q1 16 Q2 16 Q3 16 Q4 16 … H1 16 H2 16 FY 16 Focus on Health Insurance, HR & e-services Revenue Organic +13.0% Growth +8.7% +10.3% +9.5% +9.6% +11.5% +10.5% Q1 16 Q2 16 Q3 16 Q4 16 … H1 16 H2 16 FY 16 Healthcare Professionals Revenue +0.5% (6.3)
Slide 37: Well Diversified revenue source
Well Diversified revenue source │37│ © Cegedim 2017
Slide 38: Adjusted EBITDA Trend by division
Decreased in EBITDA is mainly du to the Healthcare Professionals Division EBITDA trend improved over the year Adjusted EBITDA: €(3.7)m €(1.4)m Consolidated EBITDA adjusted for the €4.0m Adjusted €(9.4)m of negative impact from impairment of EBITDA Trend €(13.1)m H1 16 H2 16 Q4 16 FY 16 receivables i
Slide 39: Adjusted EBITDA Trend by nature
€4.8m €16.5m €14.7m €19.1m €78.5m €1.0m €61.4m FY 15 Revenue Purchases External Payroll Others FY 16 Adjusted used expenses used EBITDA Trend EBITDA Trend by nature €27m 4,062 +28% 3,886 +154 +22 €21m 3,723 +163 +43 3,432 +248 Jun.15 Dec. 15 Jun. 16 Dec. 16 FY 2015 FY 2016 │39│ Workforce on long ter
Slide 40: Health Insurance, HR & e-services Revenue
+1.4% €262.3m +10.5% (0.2)% €234.7m 59.5% +11.8% reported Health FY 15 L-f-L Forex Structure FY 16 Insurance, HR % of 2016 Consolidates revenue Revenue growth & e-services Revenue • Double-digit growth at BPO business for health insurance companies (iGestion) EMEA • Robust growth in the third-party
Slide 41: Health Insurance, HR & e-services Operating Profit
In € million FY FY % 15 16 change Revenue 234.7 262.3 +11.8% EBITDA 46.5 43.9 (5.7)% Margin 19.8% 16.7% (309)bps Health D&A (16.0) (15.3) +(4.6)% EBIT before special items 30.5 28.6 (6.3)% Insurance, HR Margin 13.0% 10.9% (209)bps & e-services Special items (0.3) (0.3) n.m. Operating Profit The decl
Slide 42: Healthcare Professionals Revenue
€187.2m (2.8)% (3.7)% 39.7% 0.0% €175.2m (6.4)% reported Healthcare FY 15 L-f-L Forex Structure FY 16 Professionals % of 2016 Consolidates revenue Revenue growth Revenue • Decline in revenue was due to: • Transition to cloud-based offerings • Wait and see attitude from UK doctors pending the America
Slide 43: Healthcare Professionals Operating Profits
In € million FY 15 FY 16 % change Revenue 187.2 175.2 (6.4)% EBITDA 30.0 16.9 (43.8)% margin 16.0% 9.6% (641)bps Adjusted EBITDA 30.0 20.9 (30.5)% margin 16.0% 11.9% (413)bps D&A (11.3) (13.6) +20.5% EBIT before special items 18.7 3.2 (82.7)% margin 10.0% 1.9% (815)bps Healthcare Adjusted EBIT befor
Slide 44: From EBITDA to EBIT before special items
€78.5m €(17.1)m €61.4m FY 2015 FY 2016 EBITDA Trend +€3.9m €34.3m From €30.4m €12.6m EBITDA €9.8m to €20.6m €21.7m EBIT before special items FY 2015 FY 2016 R&D Depreciation Depreciation Depreciation expenses €48.1m €(21.0)m €27.1m │44│ FY 2015 FY 2016 EBIT before special items © Cegedim 2017
Slide 45: From EBIT before special items to Net Earnings
Special items In € million FY 15 FY 16 Restructuring cost (4.0) (9.2) Allowance for legacy software - (7.5) Impact of moving the corporate headquarters - (2.8) Financial penalties on 2007 business divestment - (4.6) Other (2.6) (0.0) Special Items (6.7) (24.1) From Cost of net debt EBIT before speci
Slide 46: Financial Performance
In € million FY 15 FY 16 % change Revenue 426.2 440.8 +3.4% EBITDA 78.5 61.4 (21.8)% Margin 18.4% 13.9% (449)bps Adjusted EBITDA 78.5 65.4 (16.7)% Margin 18.4% 14.8% (359)Bps Financial D&A (30.4) (34.3) +12.8% Performance EBIT before special items 48.1 27.1 (43.7)% Margin 11.3% 6.1% (514)bps Special
Slide 47: Net Debt Situation
Net Debt Situation €33,0m €0.8m €(4.6)m €226.8m €26,2m €167.6m €(57.5)m €21,6m €40,6m €(6.8)m €5,7m paid working capital Others Cash generated Capitalized Capex Acquisitions Interest Paid Impact Net Debt Net Debt Tax Dec. 16 Dec.15 by operations Change in FX R&D │47│ (1) Including net debt related t
Slide 48: Credit rating
Credit rating BB S&P Rating assessed on April 28, 2016 stable outlook Solide Capital Structure Maturity Profile • RCF: €200m due 2021, • Compliant with Bank €190m drawn at covenants Dec. 31, 2016 • Leverage ratio 2.28 │48│ • Shareholder Loan: (<2.50) €45m due 2021 • Coverage ratio 2.79 © Cegedim 201
Slide 49: FY 2016 Balance Sheet
In € million Dec.15 Dec.16 Assets Goodwill 188.5 199.0 Other non-current assets 223.7 248.3 Cash & Cash equivalent 231.3 20.8 FY 2016 Other current assets 220.0 241.1 Assets held for sale 0.8 0.0 Balance Total assets 864.3 709.1 Sheet Shareholders equity & liabilities Shareholder equity 228.1 188.9
Slide 50: © Cegedim 2017
© Cegedim 2017
Slide 51: FY 2017 Outlook
» FY 2017 Outlook <<
Slide 52: Potential impact of Brexit
In 2016, the UK represented 12.7% Of consolidated Group revenue Potential 14.8% impact of Of consolidated Group EBIT Brexit • Cegedim operates in the UK in local currency, as it does in all the countries where it operates. • No major European health program at work in the UK. Thus, the impact on the
Slide 53: 2017 Outlook: A Growth Story
FY 2017 Revenue +4% / +6% L-f-l growth As of March 22, 2017 2017 €66m to €72m FY 2017 EBITDA As of March 22, 2017 Outlook A Growth Story • The business model transformation is well under way, so growth momentum is expected to pick up in Q4 2017 and lead to improving profitability in the future • We
Slide 54: Q&A Session
Q&A Session
Slide 55: Notes
» Notes « © Cegedim 2017
Slide 56: Appendix
Appendix mi, cegedim
Slide 57: Cegedim: Enterprise value
Analyst coverage. • Kepler Cheuvreux Benjamin Terdjman • Gilbert Dupont Guillaume Cuvillier • Société Générale Patrick Jousseaume Entreprise value trend 800 Cegedim: 671.5 700 Entreprise 615.5 601.1 593.5 600 value 566.3 558.5 500 Net debt 400 Market 300 Capitalization 200 100 0 Sep. Dec. Mar. Jun.
Slide 58: Shareholder Structure as of Dec. 2016
Others 4% Shareholder BPI USA France 29% 34% Structure as 15.0% of Dec. 2016 Free float UK 33% 32.2% FCB 52.7% Source: IPREO Data on Sept. 26, 2016 Cegedim 0.2% │58│ © Cegedim 2017
Slide 59: Events 2017
EVENTS 2017 22 23 27 March March April 2016 Earnings Analyst Meeting Q1-17 Revenue 27 20 26 July September October Q2-17 Revenue HY-17 Earnings Q3-17 Revenue © Cegedim 2017
Slide 60: Investor Relations contact
Jan Eryk Umiastowski Chief Investment Officer – Head of Investor Relations janeryk.umiastowski@cegedim.com Tel: 00 33 1 49 09 33 36 – Mob: 00 33 6 73 25 96 34 © Cegedim 2017